Infra Insight Blog

On March 12, 2013, the Florida Department of Transportation (FDOT) issued a press release regarding their publication of a Request for Qualifications (RFQ) soliciting statements of qualifications from prospective private entities for development and implementation of a public-private partnership for the $2 billion+ Orlando-area project.  FDOT is seeking a private firm that is experienced in designing, building, financing, operating and maintaining both general use and managed lane roadways.

The I-4 Ultimate Project will be structured as an availability payment ...

On March 7, Project Finance Magazine held its annual Project Finance Americas Deals of the Year awards dinner in New York City.  The awards – which started 14 years ago – are for innovation, deal repeatability, best practice, problem solving, value for money and speed of delivery in the financing of infrastructure projects.  Two public-private partnership projects – one on the East coast and one on the West coast – received honors at this year’s dinner.     

The award for 2012 North America Toll Road Deal of the Year was given to the Midtown Tunnel project located in the Hampton Roads ...

The Design-Build Institute of America announced today the 2013 Design-Build in Transportation Awards, which will be presented on March 19, 2013 at the 2013 Design-Build in Transportation Conference in Orlando, Florida.

The California Department of Transportation was named 2013 Transportation Owner Agency of the Year.  Caltrans has made great strides with design-build recently through its Design-Build Demonstration Program.  Caltrans also reached financial close this year on its high profile Presidio Parkway project, which will use the design-build-finance-operate and ...

Texas Department of Transportation (TxDOT) officials executed a Facility Agreement  with NTE Mobility Partners Segments 3 LLC (Developer) on March 1 for Segments 3A and 3B of the North Tarrant Express project in northeast Tarrant County.  The agreement provides for the expansion of Interstate 35W in north Fort Worth, one of the region’s top priorities for congestion relief.  Segments 3A and 3B are the primary focus of the North Tarrant Express Master Development Plan, and will add approximately 10 miles of I-35W to the North Tarrant Express project.

Pursuant to the Facility ...

Under the general direction of the Toll Program Director, the Toll Project Manager will directly manage delivery of toll projects from the environmental phase through design and construction; supervise the work of project management staff, support staff and consultants; represent RCTC in meetings and presentations; manage project budget, schedule, and scope; perform other related work as necessary.

The Riverside County Transportation Commission (RCTC), established through Assembly Bill 1246, oversees funding and coordination of all public transportation services ...

On January 14, 2013, the Federal Highway Administration (FHWA) and Federal Transit Administration (FTA) issued guidance on Section 1319 of the Moving Ahead for Progress in the 21st Century Act (MAP-21), Pub. L. 112-141, July 6, 2012.  MAP-21 is a measure that reauthorizes transportation funding through the end of 2014, and is the product of a robust effort by transportation advocates to streamline the lengthy, complex, and cumbersome federal environmental process.  As we reported here, MAP-21 includes several meaningful reforms that could expedite the National Environmental ...

State public records acts and the federal Freedom of Information Act (FOIA) were enacted to prevent favoritism and corruption, but have had unintended consequences on competition for public projects.  As discussed in a recent article, requests for information have become a vehicle for contractors to obtain valuable information about their competitors that might not otherwise be available.

In addition, requirements to disclose information about a project to the public, including information about proposals received, whether compelled by law, political pressure, or ...

The Florida Department of Transportation has scheduled an industry forum for the I-4 Ultimate Project.  The forum will be held on March 4, 2013 to introduce this $2 billion+ Orlando-area project.  The project will add two managed lanes in each direction from west of Kirkman Road in Orange County to the east of SR 434 in Seminole County, a distance of 21.1 miles.  As currently contemplated by FDOT, the project includes reconstruction of 15 interchanges, 56 new bridges and 68 bridge replacements and will be procured as a public-private partnership. 

The forum is intended for all those ...

The Federal Highway Administration (FHWA) released two guidance memoranda in December 2012 relating to Buy America, largely in light of the amendments made by MAP-21.  On December 20, FHWA clarified the Buy America requirements applicable to utility work on Federal-aid projects.  The December 21 memorandum provided additional amplification on FHWA’s position regarding Buy America requirements applicable to manufactured products.

FHWA’s December 20, 2012 Guidance

FHWA was in the process of evaluating the applicability of Buy America requirements to utility work on ...

As part of its effort to meet MAP-21’s legislative requirement to develop standard public-private partnership transaction model contracts for the most popular types of public-private partnerships, the Federal Highway Administration held a listening session with representatives from the transportation industry at the U.S. Department of Transportation in Washington D.C. on January 16.  Representatives from state departments of transportation, general contractors, trade associations, legal advisors and others were in attendance, and solicited to provide FHWA with the ...

The Metro Gold Line Foothill Extension Construction Authority (Authority) has announced the completion of the Iconic Freeway Structure Design-Build Project (Iconic Freeway Structure) on-time and on-budget. Awarded to Skanska USA in 2010, the project involved the design and construction of the Gold Line Bridge, a 584-linear foot sculptural bridge. 

The $18.6 million dual track bridge is the first element completed for Phase 2A of the 11.5-mile Metro Gold Line Foothill Extension (Foothill Extension) that will connect the existing Sierra Madre Villa Station in the city of ...

As reported in our December 18 post, the New York State Thruway Authority unanimously approved award of the design-build contract for the Tappan Zee bridge replacement project to Tappan Zee Constructors, LLC.  All required approvals for contract award have now been obtained, and the Authority issued the notice to proceed on January 18, 2013.

A key element of a successful P3 program is an effective and comprehensive public outreach strategy.  Demonstrating why Virginia remains a leader in closing P3 transportation deals, the Virginia Office of Transportation Public-Private Partnerships (OTP3) recently prepared a variety of fact sheets, presentations and FAQs focusing on different aspects of P3s in Virginia.  The materials can be found at the OTP3 website.

These materials were prepared in cooperation with the Public Private Transportation Act Working Group.  This group was established in June 2012 to solicit ideas and ...

In an important victory for the $5 billion Honolulu rail transit project, on December 27, 2012 the U.S. District Court in Hawaii issued a judgment allowing construction of the first three phases of the 20-mile Project to continue pending the completion of additional environmental analysis regarding the last construction phase the Project in downtown Honolulu.  The Court’s judgment keeps in effect in Federal Transit Administration’s approval of the Project and the $1.5 billion Full Funding Grant Agreement for the Project recently executed by the FTA and the City.  The Court’s ...

On December 27, 2012, the Indiana Finance Authority (IFA) achieved commercial close of the East End Crossing project in southern Indiana, part of the broader Louisville-Southern Indiana Ohio River Bridges Project.  WVB East End Partners, LLC (WVB), is the private counterparty for the East End Crossing project under an availability payment concession, a first for Walsh and VINCI in an equity role in the US P3 market.  The parties reached agreement and executed the public-private agreement before the end of the year as scheduled, capping an extraordinary procurement on an expedited ...

On December 19, 2012 the Federal Transit Administration executed a $1.5 billion Full Funding Grant Agreement for $ 5 billion, 20-mile, Honolulu rail transit project.  The Project will serve the heavily congested corridor between the west side of O'ahu and downtown Honolulu.  The Project will provide transit access to major employment centers, activity centers, and tourist destinations in Honolulu, including the Pearl Harbor Naval Base, Aloha Stadium, the Honolulu International Airport, Chinatown, the downtown business center, the Civic Center, the Port of Honolulu, and the Ala ...

The Utah Department of Transportation (UDOT) has announced the completion of the Utah County I-15 Corridor Expansion (I-15 CORE) project ahead of schedule and under budget. The 24-mile design-build project added two travel lanes on I-15 in each direction, rebuilt or replaced 63 bridges and 10 freeway interchanges and replaced the existing roadway from Lehi to Spanish Fork with 40-year concrete pavement without decreasing the number of lanes during the majority of construction.

As one of the State of Utah’s largest highway construction projects, the $1.1 billion design-build ...

On December 17, 2012, the Board of the New York State Thruway Authority (NYSTA) unanimously approved award of the design-build contract for the Tappan Zee bridge replacement project to Tappan Zee Constructors, LLC (a consortium of Fluor Enterprises, Inc., American Bridge Company, Granite Construction Northeast, Inc., and Traylor Bros., Inc.).  New twin spans will replace the existing Governor Malcolm Wilson Tappan Zee Bridge, which is to be demolished and removed.  The contract award requires additional State approvals before it becomes effective.  Notice to proceed is expected ...

On December 13, 2012, the Texas Transportation Commission conditionally awarded the design-build and capital maintenance agreements for the IH 35E Managed Lanes Project to AGL Constructors, a joint venture comprised of Archer Western Contractors, LLC, Granite Construction Company and The LANE Construction Company. AGL Constructors was one of four teams the Texas Department of Transportation shortlisted for the project earlier this year. The other proposer teams included:

• Dallas to Denton Constructors, a joint venture comprised of Zachry Construction Corporation and ...

The 20th annual conference of The Canadian Council of Public-Private Partnerships (CCPPP) was held in Toronto on November 26-27, 2012.  Drawing industry leaders from within and outside of Canada, the conference this year reflected the maturity of the Canadian market and the interest of P3 players looking beyond its borders for future opportunities, particularly participating in the growing U.S. P3 market. 

One of the keynote speakers was Michigan Governor Rick Snyder, who championed the proposed $3.5 billion Detroit-Windsor bridge and expressed appreciation for Canada’s ...

On November 29, 2012, financial closing was achieved on a 30 year concession relating to the water and wastewater facilities of the City of Rialto, California.  The agreement, which had been executed in March 2012, is among Rialto Water Services, LLC, the single purpose vehicle set up by Table Rock Capital as the project sponsor, the City of Rialto and the Rialto Utility Authority.  

The approximately $175 million transaction is being bond financed through a private placement and an approximately $26 million equity contribution.  The concession agreement provides for approximately ...

On November 16, 2012, the Indiana Finance Authority (IFA) selected WVB East End Partners (WVB) as the Preferred Proposer for IFA’s East End Crossing project in southern Indiana.  WVB East End Partners is a joint venture consortium of Walsh Investors, LLC, VINCI Concessions S.A.S. and Bilfinger Berger PI International Holding GmbH, partnering with Walsh Construction Company and VINCI Construction Grand Projets as the builders, with Jacobs Engineering Group, Inc. as the designer, and with others.  VINCI Concessions S.A.S. will be performing the operations and maintenance of the ...

On November 16, 2012, the board of the Indiana Finance Authority (IFA), with Governor Daniels in attendance, based on the recommendation of Kendra York, IFA’s Public Finance Director, approved the preliminary selection of WVB East End Partners as the preferred proposer for the East End Crossing project, Indiana’s second foray into public-private partnerships as a solution to infrastructure planning for the State.  The East End Crossing is Indiana’s part of the Louisville-Southern Indiana Ohio River Bridges Project (the ORB Project).  WVB East End Partners is a joint ...

The North County Transit District (NCTD) in Oceanside, California is seeking to hire a dynamic and experienced attorney to serve as General Counsel to the organization’s Board of Directors, and Executive Staff. The General Counsel reports directly to the NCTD Board of Directors and is responsible for performing all legal services for this progressive public transportation agency. 

NCTD employs nearly 700 people, including more than 100 direct employees and 600 contract employees. Overseeing the organization is the NCTD Board of Directors which consists of nine members all of ...

On Saturday November 10, the California Department of Transportation (Caltrans) and Los Angeles County Metropolitan Transportation Authority (MTA) converted the I-110 Harbor Transitway lanes (ExpressLanes) from High Occupancy Vehicle (HOV) or carpool lanes to High Occupancy Toll (HOT) lanes.  The ExpressLanes, extending from Harbor Gateway Transit Center to Adams Boulevard, are part of a one-year demonstration program that seeks to introduce congestion pricing to the I-110 freeway, and later the I-10 freeway.  This conversion follows a growing trend in California, as well ...

The Texas Department of Transportation (TxDOT) and SH 130 Concession Company have announced the opening of Central Texas' newest toll road on October 24.  SH 130 Segments 5&6 is a 41-mile extension of the existing 50-mile SH 130 toll system that currently connects Georgetown to South Austin.  The new toll road extension starts at Mustang Ridge, spanning three counties and ending at Interstate 10 near Seguin. 

The new toll road is entirely automated, and will be fully interoperable with the existing SH 130 toll system so that travel between various segments will be seamless.  The new ...

The Texas Department of Transportation (TxDOT) has reached a tentative, $1.6 billion deal with a private developer to expand Interstate 35W in north Fort Worth.  According to a report released by TxDOT in late August, the stretch of I-35W in northern Tarrant County that is the subject of the agreement is the most congested roadway in the state - causing motorists to collectively waste more than 2 million hours.  The deal between TxDOT and the developer, an affiliate of the entity that is currently developing the $2.5 billion North Tarrant Express project in northeast Tarrant County, will ...

On October 10 through 12, the American Road & Transportation Builders Association (ARTBA) held their 24th Annual Public-Private Partnerships in Transportation Conference in Washington, DC.  Each year during this conference, the ARTBA P3 Division honors two individuals, one public sector and one private sector, for their exemplary contributions to the transportation industry. 

This year we are proud to announce that Nossaman's Geoff Yarema was named "P3 Private Sector Entrepreneur of the Year."  Geoff is the first two-time recipient of this award, having received the award in ...

On October 11, Nick Nicholson, Deputy Director and Chief Engineer of the District of Columbia Department of Transportation (DDOT) Infrastructure Project Management Administration, participated in a panel session at the American Road & Transportation Builders Association (ARTBA) Annual Public-Private Partnerships in Transportation Conference in Washington, D.C.  Mr. Nicholson told conference attendees that DDOT is actively looking at public-private partnerships to deliver several projects in the District of Columbia.  Although the District does not have dedicated P3 ...

The Federal Highway Administration (FHWA) recently issued guidance for implementing various aspects of the Moving Ahead for Progress in the 21st Century Act (MAP-21), including:  Infrastructure; Environment, Planning and Realty; Safety; Operations; and Innovative Program Delivery.  The guidance became effective October 1, 2012.

The interim guidance on Innovative Program Delivery includes provisions for implementing the new public-private partnership (P3) assessment requirement for Major Project Finance Plans under MAP-21.  The new P3 assessment requirement is, in our ...

The Texas Transportation Commission selected the apparent best value proposer for the design, construction and long-term capital maintenance of the Grand Parkway project, a 37-mile, greenfield toll road in Houston. The high-priority project awarded on Thursday consists of Segments F-1, F-2 and G of the Grand Parkway, part of a proposed 184-mile highway, encircling the Houston area. A few of the other, smaller segments of the Grand Parkway are being developed using traditional construction contracts. Segments D and E are currently under construction and Segment I-2 is already ...

On September 24 the Federal Highway Administration issued policy guidance on various aspects of MAP-21, including a memorandum to its Division Administrators on the tolling provisions in MAP-21 and questions and answers on federal tolling laws.

The tolling guidance addresses (1) the complete replacement of the prior statutory language of 23 U.S.C. 129(a), (2) the application of the existing HOV/HOT lane provisions in 23 U.SC 166, and (3) the status of the four existing toll pilot programs.  It is a must-read for anyone concerned with federal tolling law and policy.

Sections 129 and ...

Last night the Knik Arm Bridge and Toll Authority, responsible for development of the $750 million Knik Arm Crossing project in the Anchorage, Alaska region, filed a letter of interest with the USDOT for TIFIA credit assistance.  It is one of the first, if not the first, letters of interest filed under the USDOT’s July 27 Notice of Funding Availability implementing the MAP-21 amendments to TIFIA.

KABATA filed a letter of interest in November 2011 for a $308 million TIFIA loan.  With the changes in MAP-21 authorizing TIFIA credit assistance up to 49% of eligible project costs and ...

The Moving Ahead for Progress in the 21st Century Act (MAP-21) contains meaningful reforms that collectively represent a significant improvement in federal surface transportation law.  For the most part, federal law directly on the subject of public-private partnerships saw little change of significance.  Other federal laws, though not directly addressing PPPs, also affect the viability as a project financing mechanism.  Changes to the TIFIA program and to federal tolling law that will markedly improve project finance via public-private partnerships were addressed in our ...

MAP-21 contains meaningful reforms that collectively represent a significant improvement in federal surface transportation law. Join our panel, including key house staff members critical to MAP-21, for a 90-minute discussion on selected aspects of the Act and listen as they address the effects it will have on the transportation industry.

Congress recently passed MAP-21 and under prior law, with few exceptions, tolling was prohibited on Interstate highways and many other federal-aid highways. The bill expands the exceptions, in recognition of the fact that federal fuel tax revenues are stagnant and new revenue sources are imperative to meet the growing funding gap in surface transportation.

MAP-21, a measure to reauthorize transportation funding through the end of 2014, is the product of a robust effort by transportation advocates to streamline the lengthy, complex, and cumbersome federal environmental process.

On June 29, 2012 Congress passed the Moving Ahead for Progress in the 21st Century Act (MAP-21), a compromise measure to reauthorize transportation funding through the end of 2014.  A bipartisan and bicameral measure, MAP-21 contains meaningful reforms that, although marred by some missed opportunities, collectively represent a significant improvement in federal surface transportation law.

We foresee continued heavy demand for TIFIA credit assistance, particularly given the more attractive features of the reenacted TIFIA program.  We have some concern that the combination ...

Hot on the heels of the financial close of the Presidio Parkway, the first California transportation public-private partnership (P3) availability payment deal and only the fourth in the United States, Federal Highway Administration’s (FHWA) Office of Innovative Program Delivery has issued guidance regarding the eligibility of periodic availability payments for reimbursement from federal aid funds.  Federal-Aid Funding and Availability Payments

Recognizing that availability payment concessions can offer the benefits of enhanced performance and project cost savings ...

The California Department of Transportation (Caltrans), in cooperation with the San Francisco County Transportation Authority, reached financial close on the Presidio Parkway Project public-private partnership (P3).  The $1.1 billion deal is the first transportation P3 in California under the recently enacted P3 statute, Streets and Highways Code section 143, and only the third highway project developed through an availability payment structure. 

Caltrans entered into an agreement with Golden Link Concessionaire, LLC, a consortium led by Hochtief PPP Solutions North ...

On July 9, LA Metro is hosting an Industry Outreach Workshop to accelerate PPP delivery of six highway improvement projects in Los Angeles County known as the Highway Goods Movement Package.  The workshop is being held at Metro’s Gateway Building headquarters where there will be a 2-hour presentation in the morning detailing the six projects, followed by one-on-one meetings with Metro representatives. 

You can RSVP to Metro’s Public-Private Partnership Program Manager Kathleen Sanchez at SanchezK@metro.net.  Here are the details:

Metro’s Gateway Building

One Gateway ...

Governor Mitch Daniels of Indiana and Senator Jeff Bingaman of New Mexico exchanged comments regarding Indiana’s privatization of 157 miles of toll roads through two articles that appeared in The Washington Post, titled Indiana didn’t ‘sell its toll roads and Taxpayers paying for roads – twice.  This exchange concerns the Senator's proposal to, among other provisions, remove lane miles which are under a long-term PPP lease agreement from the formula which generates federal gas tax dollars to the states.  If Senator Bingaman's proposal were to become law, Indiana's ...

The Port of Long Beach and Caltrans have selected a team led by Shimmick Construction Company, Inc., FCC Construction S.A., and Impregilo S.p.A. as the apparent best value proposer for the Gerald Desmond Bridge Replacement Project design-build contract.  The Shimmick team had both the highest technical score and, at $649.5 million, the lowest proposal price to replace the existing span linking Interstate 710 to the Port of Long Beach.

The Port and Caltrans are jointly procuring the design-build portion of this project through California’s Design-Build Demonstration Program.  ...

In a decision of importance to transportation projects throughout California, the California Court of Appeal rejected environmental challenges to the $1.5 billion extension of the Exposition Corridor light rail line in Los Angeles.  Neighbors for Smart Rail v. Exposition Metro Line Construction Authority (2012) __ Cal.App.4th __ (April 17, 2012, B232655).  The decision is cause for optimism, not only for transportation agencies, but for all Californians who stand to benefit from transportation projects designed to reduce air emissions and traffic congestion.  Nossaman ...

On April 26, 2012, the Texas Department of Transportation (TxDOT) announced the shortlist for the proposed IH 35E Managed Lanes Project in Dallas and Denton Counties.  The shortlisted teams were selected based on qualification statements submitted on March 23, 2012 in response to the request for qualifications (RFQ) issued by TxDOT on January 23, 2012.

The RFQ solicited separate qualification statements from teams with experience in design-build and toll concession contracting.  TxDOT decided to move forward with the design-build alternative with a capital maintenance option.  ...

On April 23, 2012, the Indiana Finance Authority (IFA), in coordination with the Indiana Department of Transportation, shortlisted four teams for its East End Crossing (Louisville-Southern Indiana Ohio River Bridges Project) (the East End Crossing) located in Southern Indiana.

The East End Crossing is part of the broader Ohio River Bridges Project in the greater Louisville, Kentucky/Southern Indiana region.  Specifically, the Ohio River Bridges Project will consist in improvements to connecting roadways, but most prominently, provide two new toll bridges across the Ohio ...

The Virginia Department of Transportation and Elizabeth River Crossings Opco LLC (ERC) reached financial close on a toll concession public-private partnership ("PPP") for the $2.1 billion Midtown Tunnel Project.  It is the first United States transportation PPP to reach financial close in 2012 and will include construction of a new Midtown Tunnel, rehabilitating the existing Midtown and Downtown Tunnels, extending Martin Luther King Boulevard and will provide much needed transportation improvements and congestion relief to motorists in the Hampton Roads region.  ...